Luxury Home Construction Trends

January 29th, 2014

The following article appeared in today’s edition of Florida Realtor News.

WASHINGTON – Jan. 28, 21014 – During the recent recession, interest in large and expensive homes dropped dramatically as homebuyers showed preferences for smaller, more affordable homes.

But luxury home features once again appeal to house hunters, as the affluent buyer steps back into the market. In July 2013, sales of homes costing more than $1 million rose 46.6 percent from the previous July.

“The housing market is being driven by the move-up buyer, the luxury buyer,” Brad Hunter, chief economist and director of consulting at Metrostudy, told The New York Times. “And those who have strong incomes, secure jobs, their stock portfolio is doing well – they are able to buy whatever they want. And what they are buying is larger houses.”

In 2007, the median size of new homes built for sale peaked at 2,295 square feet. That number fell to 2,159 square feet in 2009. But in 2012, new-home size increased to a new peak of 2,384 square feet, according to the National Association of Home Builders. What’s more, about 41 percent of new homes had four or more bedrooms, up from 34 percent in 2009.

Homebuilder Toll Brothers, which caters to the luxury market, reported its revenue rose 65 percent in the fourth quarter over last year’s numbers. The average sales price of Toll Brothers’ homes rose 21 percent during that time too.

Homes with the largest kitchens and most expansive master suites are the top sellers nowadays, says Tim Gehman, design director at Toll Brothers. “It’s a matter of how large and impressive those two features are and how much buyers can afford,” Gehman says.

Also, affluent buyers seem to be lured to established suburban communities that are near job centers and have good schools. They are showing less interest in the large homes – often dubbed “McMansions” – in the exurbs that were popular during the housing boom years, says Lawrence Yun, the National Association of Realtors®’ chief economist.

Source: “In Housing, Big Is Back (Not Counting the Extras),” The New York Times (Jan. 25, 2014)

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Know Your Numbers: Metro West Real Estate Stats for 2013 vs 2012

January 24th, 2014

The following tables include the Key Real Estate stats for the Metro West/Orlo Vista area, zip code 32835. This area includes a large number of multi-family properties, thus the need for 2 tables. The first table includes stats for all Property types and the second table includes Key Real Estate Stats for just Single Family Home Sales.

MetroWest Real Estate Stats All Property types 2013 vs 2012

Metrowest Real Estate Stats - SF only - 2013 vs 2012

Insights:
Over 50% of the property sales in this zip are multifamily sales. Multifamily and Single Family Home sales experienced similar increases in Average and Median Sales Price, 20% and 26% respectively. The Average Selling Price increased from $180,531 to $217,125. On average the 2013 Single Family Home Sales sold in 61 days, a 19% reduction from 2012.

The mix of inventory in the Metro West Master Planned Community, condo vs single family, and the type of sale (traditional, short sale and bank owned) impacted stats as well. The Metro West Master Planned Community has approximately 1,100 single family homes and 5,300 condominiums as well as 2,900+ apartments.

Metro West is a desirable Master Planned Community due to its central location, shopping and dining, schools, proximity to Valencia College and access to theme parks. It is just a short drive to Universal Theme Park and Resorts. The Metro West Golf course, a local favorite, recently completed a major update to all 18 greens and every bunker. As previously noted there is a diverse mix of Housing and Community options in 32835. The area experience a building boom in condominiums prior to the downturn and experienced a high level of defaults, which in recent years have been acquired by investors.

Whether you are Buying or Selling let us help you understand the Real Estate Value for your home and community of interest. Contact us today for a free no obligation Home Valuation.

Know Your Numbers: Winter Garden Real Estate Stats for 2013 vs 2012

January 23rd, 2014

The Winter Garden, Florida real estate market had a great 2013! Whether you are a Buyer or a Seller understanding the current market trends is critical to a successful sale or purchase.

The data in the table below highlights the Key Real Estate stats for the year ending 2013 and a comparison to 2012.

Winter Garden Real Estate Stats 2013 vs 2012

In spite of a significant increase in Properties Available for Sale, the Days on Market dropped to an average of 65 days vs 80 days last year as 58% more Homes were sold in Winter Garden in 2013 over 2012. Home prices showed strong increases for the year, with  22% and 28% increase in the Average and Median Sales Price, respectively. However,  there  is only a 3.5 month supply of homes, a healthy level for sellers.

Although interest rates have increased modestly they continue to be at historic lows, see previous Blog post regarding interest rates. The pent up demand, demographic changes, improving economic climate and consumer sentiment, changes in the mix of inventory being sold,  coupled with the desirability of living in Winter Garden, Florida are all contributing factors to increasing prices. Winter Garden covers a large geographic area in Southwest Orlando and has an excellent transportation network, great schools (public and private) abundance of shopping and dining opportunities, a variety of recreational options,  easy access to theme parks, a wide range of Housing options and large tracts of developable land for new construction.

Whether you are Buying or Selling let us help you understand the Real Estate Value for your home and community of interest. Contact us today for a free no obligation Home Valuation.

Know Your Numbers: Winter Garden Real Estate Statistics for August 2013

October 9th, 2013

Whether you are a buyer or a seller understanding the current market trends is critical to a successful sale or purchase. Market conditions are changing and knowing the current equilibrium between buyers and sellers in your market and neighborhood is critical. Market knowledge let’s buyers submit successful offers and allows sellers to maximize sales proceeds.

In this post we will focus on the Winter Garden and Oakland Real Estate markets located in zip code 34787. In August 2013 the 34787 zip code lead all 58 zip codes in Orange and Seminole Counties for total number of sales.

The following table highlights the key Real Estate stats for the month of August and makes a comparison to July and January.

Winter Garden Real Estate Stats for August 2013

Insights:
With real estate prices in Winter Garden and Oakland up 26% for the year, homeowners that have been considering selling their homes are moving off of the side lines, as evidenced by the increase in Homes Available for Sale. The Homes Available for Sale increased 14% from the prior month and 42% above the January level. Great news for Buyers!

The Average Sales price in Winter Garden has increased 26% for the year, with a negligible increase in August from the the prior month. The Average Days on Market for a listing was only 53 days in August down dramatically from July and January. The surge in Buyer demand for homes in the Winter Garden market has resulted in many sellers receiving multiple offers. Great news for Sellers!

At current sales levels there is only a 2.3 months supply of inventory.

It will be interesting to watch these trends over the next few months to see how the dynamics shift between sellers and buyers and the impact on the rate of increases in home prices.

If you want to know the value of your home contact us today for a free market evaluation and if you are a buyer we can provide you with current market and neighborhood specific information for your area of interest.

Central Florida New Home Construction is on Fire!

September 26th, 2013

I have written about this before but it is a topic that continues to make the local news. New residential communities are popping-up all throughout the region. Anjali Fluker, Senior Business Writer, from The Orlando Business Journal reported yesterday that 5 Central Florida Builders have announced plans to build over 800 homes in the Central Florida Region. New communities were announced in all corners of the region, from Seminole County, Apopka, Winter Garden, Ocoee, Reunion Resort in Osceola County and St.Cloud. To read the full article click on this link or paste it into your browser http://bit.ly/1fqOp7l

All this bodes well for Central Florida with employment growing in the construction industry. Great to have the new home buyers visiting the big box and furniture stores again! It’s been awhile since we have heard the construction industry discuss the challenges of upward cost pressure on labor, land, building materials and backlogs for securing permits from the building departments!

For home buyers the communities provide an excellent opportunity to see the latest in building trends. Viewing model centers is a great way to learn about the latest in construction techniques, Green Building features and benefits, floor plan designs, interior design and decorating features. Visiting the model center is helpful even if you plan to purchase a traditional home. Make sure you discuss this option with your Realtor.

Florida Hospital Breaks Ground in Winter Garden

September 18th, 2013

The ground breaking was held yesterday for the new Florida Hospital health care campus in Winter Garden. The new facility will include an Emergency Room with outpatient imaging on the first floor both to be open in 2014, and the second and third floors will be used as outpatient surgery centers, with a scheduled opening in 2015. A future phase includes a seven story 200 bed hospital. The facility will be located between State Road 535 and Daniels Road near the Winter Garden Village at Fowler Groves.

The facility is expected to have a local impact of $100 Million. A great new addition to this rapidly expanding community.

Orlando Market Update – August 2013

September 18th, 2013

The level of traditional (normal) sales are lifting median sales price throughout the area. Checkout this months video:

This Month in Real Estate – A National Perspective

September 16th, 2013

For this months article and video on National Real Estate stats paste the following link into your web browser:

http://bit.ly/14VG9HG

Home sales last month were at an annual rate of 5.4 million with median home prices up 13.7% from the same period last year.

Although interest rates are continuing to nudge upward they are still at historic lows. Don’t miss out on this excellent opportunity to buy your dream home.

Have you or someone you know been considering Buying or Selling a Home if so please contact us to get the latest information on the value of your home or the selling prices of homes in neighborhoods where you would like to live.

Orlando New Home Construction is Red Hot!

September 10th, 2013

As you may have noticed there are new rooftops appearing all over Central Florida – this article appeared in the Orlando Business Journal from a report by Metrostudy.

To read the full article click on the following link: http://bit.ly/1dYpuq5

Many of our home buying clients opt for new construction. Linda and I work with new home builders and are familiar with community features, product offerings, incentives and pricing. We have closed several new homes in the last 30 days that our clients purchased in the spring. Contact us to learn how we can assist you with your new home purchase, and it’s free!

CoreLogic: July home prices up 12.4% year-to-year

September 5th, 2013

IRVINE, Calif. – Sept. 3, 2013 – CoreLogic released its July Home Price Index (HPI) report today.

Home prices nationwide, including distressed sales, increased 12.4 percent on a year-over-year basis in July 2013 compared to July 2012 – the 17th consecutive monthly year-over-year increase in home prices nationally.

On a month-over-month basis, including distressed sales, home prices increased by 1.8 percent in July 2013 compared to June 2013.

When distressed sales are backed out of the equation, home prices increased 11.4 percent year-over-year in July 2013 compared to July 2012. On a month-over-month basis, excluding distressed sales, home prices increased 1.7 percent in July 2013 compared to June 2013. Distressed sales include short sales and real estate owned (REO) transactions.

The separate CoreLogic Pending HPI predicts that August 2013 home prices, including distressed sales, will rise by 12.3 percent year-over-year and 0.4 percent month-over-month. Excluding distressed sales, they’re poised to rise 12.2 percent year-over-year and 1.2 percent month-over-month.

“Home prices continued to surge in July,” says Dr. Mark Fleming, chief economist for CoreLogic. “Looking ahead to the second half of the year, price growth is expected to slow as seasonal demand wanes and higher mortgage rates have a marginal impact on home purchase demand.”

July 2013 highlights

• The five states with the highest home price appreciation were: Nevada (+27 percent), California (+23.2 percent), Arizona (+17 percent), Wyoming (+16.4 percent) and Oregon (+15 percent).

• Only one state posted home price depreciation in July: Delaware (-1.3 percent).

• Excluding distressed sales from the equation, the five states with the highest home price appreciation were: Nevada (+24.2 percent), California (+20.2 percent), Arizona (+14.9 percent), Utah (+13.5 percent) and Florida (+13.5 percent).

• Excluding distressed sales, no states posted home price depreciation in July.

• The five states with the largest peak-to-current declines, including distressed transactions, were Nevada (-43 percent), Florida (-37.4 percent), Arizona (-32.5 percent), Rhode Island (-29.7 percent) and Michigan (-27.7 percent).

© 2013 Florida Realtors®